India’s food inflation has accelerated in the later part of October. The food price index rose 12.21% in the week to 22 October. The previous week it was at 11.43%. The new figures for food inflation are the highest in nine months. The latest rise was spurred by prices of meat and milk.
And while inflation remains high, India’s services industry has shrunk for a second month in a row. The HSBC Markit Purchasing Managers’ Index for October dropped to 49.1. In September it was at 49.8. Only figures above 50 on the index indicate a gain. The latest numbers indicate new business growth in services is now at its lowest since March 2009.
Indian markets broke a three day losing streak on Thursday, but still ended the session flat. The Sensex nudged up 17 points to 17,482. And the Nifty went up 7 to 5,266.